At the core of their bearish wagers is a declining movie-going audience – one that’s shifting towards digital streaming and shunning the blockbuster fare that had been such a reliable driver of box office returns for so long.

In 2016, US moviegoers bought about 38 million fewer tickets than the previous year, causing total box office receipts to decline by $36 million, despite the average ticket price increasing by 2.6%.

The slowdown is even more pronounced amongst millennials. The audience of 18-to-39-year-olds declined for five straight years through 2015 before ticking slightly upward in 2016, according to the Motion Picture Association of America.

At the root of the slowdown is how the general population – particularly millennials – now consume their entertainment. With cord-cutting on the rise, they’ve already shown a willingness to eschew traditional cable in favor of streaming services like Netflix and Amazon. Now they’re hurting your local cineplex too, and traders have noticed.

“Movie theater stocks are some of the least rewarding assets to own right now,” said Simon Colvin, an equity and credit markets analyst at data provider IHS Markit. “The industry’s ability to keep drawing audiences – and its wider relevance in a highly competitive landscape – is now under question. An increasing number of short sellers are vying to enter this horror show.”

Regal Entertainment Group

While Regal has outperformed its peers in recent months, that relative strength has made it the most popular target in the movie theater industry for short sellers. It currently has more than 15% of its shares on loan, while the demand to borrow Regal’s shares has surged by more than 50% in the last three months, according to IHS Markit.

AMC Entertainment Holdings

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Short interest in AMC has surged, even as the stock has faltered in recent weeks.

While AMC has 5.6% of its shares on loan, the highest in at least three years, the demand to short the company is actually even higher, says IHS Markit. Since the majority of the company’s shares are held by shareholder Dalian Wanda Group, the portion of the AMC’s free float being short is higher than it appears.